The New Brunswick Financial and Consumer Services Tribunal (Tribunal) approved a settlement agreement between U.S.-based Forex Capital Markets, the N.B. Financial and Consumer Services Commission (FCNB) and the Manitoba Securities Commission (MSC), which requires Forex Capital Markets to pay administrative penalties for non-compliance with securities laws.
Securities laws in Canada require a firm in the business of trading in securities to be registered with the respective provincial regulators. Although Forex Capital Markets LLC, of New York City, and Forex Capital Markets Ltd. of London, England, were not registered to sell securities in N.B. or Manitoba, they were found to have facilitated trades for residents in these provinces.
Forex Capital Markets cooperated with both the FCNB and the Manitoba Securities Commission and transferred their accounts to a firm registered in Canada.
The company agreed to pay an administrative penalty of $180,000, of which $22,000 will be paid to the FCNB. The agreement was approved following a joint settlement hearing on Oct. 14.